When Can the LGU Levy Real Property for Tax Delinquency? (Philippines)

This article explains, in Philippine context, the when, who, what, and how of local government levy on real property because of real property tax (RPT) delinquency—together with timelines, safeguards, common pitfalls, and defenses. It is based on the Local Government Code of 1991 (Republic Act No. 7160) and its implementing practice.

Quick answer (the essence)

An LGU may levy (legally seize) real property after real property tax on that property becomes delinquent and the taxpayer fails to pay within the time allowed by law and by the treasurer’s notice of delinquency. Levy is done by the local treasurer through a written warrant of levy, served on the delinquent owner/possessor and annotated on the title/tax declaration. Once levied, the property may be advertised and sold at public auction, subject to the owner’s one-year right of redemption. The RPT lien is superior to all other liens and encumbrances.

Legal bases & actors

Statute: Local Government Code (LGC), Book II, Title on Real Property Taxation (RPT).
Authorities: Provincial, city, and municipal treasurers (barangays do not impose or collect RPT).
Covered impositions: Basic RPT, additional one percent for the Special Education Fund (SEF), idle land tax, and special levies (special assessments) on benefited properties—each collected using the same machinery as the RPT.

When does RPT become delinquent?

Accrual: RPT accrues on January 1 each year and constitutes a lien on the property from that date until paid.
Installments (without interest): Taxpayers may pay in four equal parts on or before:
- March 31,
- June 30,
- September 30,
- December 31.
Interest on delinquency: If an installment is not paid when due, interest at 2% per month applies until paid, capped at 36 months (i.e., up to 72% in total interest). LGUs may also grant discounts for advance/prompt payment by ordinance.
Notice of delinquency: Each year, the treasurer posts and publishes a notice setting the due dates and warning of delinquency and consequences. After the due date lapses without payment, the account is delinquent, and levy becomes available.

Practical point: Delinquency can arise per installment. If you miss the June 30 installment but pay later, interest is computed only on the unpaid installment, not the entire year’s tax.

Prerequisites before levy

An LGU may proceed to levy only if:

There is a valid assessment and tax due (the tax must have been properly assessed; defects in assessment can void collection actions).
The tax is delinquent (deadline passed).
Notice requirements were observed (annual delinquency notice; specific service of warrant as discussed below).
Within the prescriptive period (see “Prescription” below).

The levy process (step-by-step)

1) Warrant of levy (the starting gun)

Who issues: Local treasurer.
What it contains: Name of delinquent owner/possessor, legal description of the property (including declared improvements), and the amount due (tax, interest, and expenses).
Service/annotation:
- Serve the warrant on the owner or the person with legal interest (e.g., administrator, mortgagee in possession, or occupant). If unknown, serve the occupant/administrator.
- Notify the local assessor and the Register of Deeds (for titled property) to annotate the levy on the tax declaration and/or certificate of title. For untitled land, annotate on the tax declaration and notify the barangay.

Effect: From annotation, third parties are on notice. The levy attaches to the property (land and improvements) to the extent necessary to satisfy the liability.

2) Advertisement of sale (public notice)

When: Within 30 days from serving the warrant.
How long: At least 30 days of public notice before the sale.
Mode:
- Posting at the provincial capitol/city/municipal hall and in the barangay where the property is located, and
- Publication once a week for two consecutive weeks in a newspaper of general circulation in the locality (if available).
Contents: Description of property, name of owner, amount due (tax, interest, and expenses), and time and place of sale.

3) Public auction (to satisfy the tax)

Conducted by: Local treasurer (or authorized deputy).
Bidding: Highest bidder wins; the bid price covers taxes, interest, and expenses of sale.
No bidder or insufficient bid: The LGU may purchase the property itself for the amount due, and later resell it.

4) Certificate of sale & possession

Certificate of sale issued to the purchaser; possession generally remains with the owner during the redemption period (unless otherwise provided by ordinance or circumstances such as waste).

5) Right of redemption (owner’s safety valve)

Period: One (1) year from the date of sale.
Redemption price (payable to the treasurer):
- Total of tax, interest, and expenses of sale plus
- Interest on the purchase price at 2% per month from the date of sale until redemption.
Effects of redemption:
- Purchaser receives the 2%/month interest on purchase price.
- Treasurer issues a certificate of redemption and cancels annotations.

6) Final deed & consolidation (if not redeemed)

After one year with no redemption, the treasurer executes a final deed of sale to the purchaser.
Title: The purchaser may have title transferred/issued.
Lien status: The real property tax lien is satisfied by the sale; other encumbrances may or may not survive in accordance with general property and land registration laws, but the RPT lien is superior to private liens and mortgages.

Scope of levy: what the LGU can (and cannot) seize

What can be levied: The delinquent parcel and its improvements. If several parcels are owned by the delinquent, the treasurer may choose only as much as necessary to cover the liability.
What is off-limits: Property exempt from RPT under the Constitution and the LGC (e.g., property of the Republic; charitable institutions; churches and parsonages; non-profit cemeteries; machinery for pollution control; and others as specifically exempted). Exempt status is strictly construed and often turns on actual, direct, and exclusive use.
Priority: The RPT lien attaches January 1 and is superior to all liens, encumbrances, or mortgages—a critical point in contests between government and private creditors.

Deadlines & prescription (time bars)

Collection by administrative or judicial action: Within five (5) years from the date the tax became due.
In case of fraud or intent to evade: Within ten (10) years from discovery of the fraud.
Suspension of the clock (commonly): while the treasurer is legally prevented from collecting; while the taxpayer requests a reinvestigation and is not in default; or when the taxpayer is out of the country or cannot be located.
Practical tip: LGUs should issue the warrant and conduct the sale within the prescriptive window. Taxpayers should raise prescription early if applicable.

Due process & taxpayer remedies

Before levy

Assessment challenges: A property owner may appeal an assessment to the Local Board of Assessment Appeals (LBAA) within 60 days from receipt of assessment, then to the CBAA and courts, as applicable.
Payment under protest (collection stage): For RPT collection disputes, the general rule is “pay then protest.” The protest must be filed within 30 days from payment with the treasurer. Appeals do not suspend collection unless a competent authority orders otherwise.

During levy/sale

Vitiating defects: Failure to issue/serve the warrant, to annotate, or to properly publish/post the sale often voids the levy/sale. Substantial compliance with jurisdictional steps is mandatory.
Improper party/description: Levy against the wrong owner, or with fatally ambiguous property description, is defective.
Excessive levy: Seizing more property than reasonably necessary may be challenged.

After sale

Redemption: Exercise the one-year right.
Annulment of sale: Owners may sue to annul a tax sale for jurisdictional defects (e.g., lack of proper notice/publication) or prescription violations. Courts generally require tender of the tax due as a condition to equitable relief, especially where defects are not jurisdictional.

Computations that matter

Interest on delinquency: 2% per month from delinquency until full payment, maximum 36 months per installment.
Redemption interest (to purchaser): 2% per month on purchase price from sale to redemption.
Expenses of sale: Posting, publication, and other costs are chargeable to the delinquent taxpayer and must be itemized in the treasurer’s statement and in the sale notice.

Special situations

Co-owned property: Levy can reach the delinquent co-owner’s undivided interest.
Condominium units: The unit (and appurtenant common interest) is the taxable parcel; levy targets the unit.
Leased property: If the lessee is the declared possessor, the LGU may proceed against the lessor’s property for RPT since the lien runs with the property; however, contracts may shift the economic burden between lessor/lessee.
Government-owned but privately used property: May be taxable if beneficial use is granted to a taxable person; levy follows that beneficially used property.
Property subject to mortgage: The RPT lien outranks the mortgage; a tax sale can supersede private liens, subject to land registration and purchaser’s consolidation.

Checklist (for LGUs)

Confirm valid assessment and amount due per parcel/improvement.
Confirm delinquency (missed installment; compute interest).
Issue warrant of levy, with full description and amounts.
Serve warrant on owner/possessor; notify assessor and Register of Deeds for annotation.
Advertise sale within 30 days from service; ensure 30-day posting and two-week newspaper publication.
Conduct auction; prepare minutes, statement of expenses, and certificate of sale.
Track one-year redemption; if redeemed, cancel annotations; if not, execute final deed and assist in title transfer.
Observe prescription limits throughout.

Checklist (for taxpayers)

Calendar the four due dates each year (Mar 31 / Jun 30 / Sep 30 / Dec 31).
If you receive an assessment change, consider LBAA appeal (60 days).
If you disagree with the amount due at collection, pay then protest (within 30 days from payment).
Upon receipt of a warrant of levy, check:
- Was the warrant served on the correct party and properly annotated?
- Does it accurately describe the property and amounts?
- Are interest and expenses correctly computed (2%/month, 36-month cap)?
- Is the sale properly posted & published within the statutory timelines?
- Has the 5-year (or 10-year) period expired?
If your property is sold, decide early whether to redeem within one year; compute the full redemption amount including the purchaser’s 2%/month interest.

Frequently asked questions

Q1: Can the LGU immediately levy the day after I miss a quarterly due date? Yes. Once an installment is delinquent and the treasurer has given the annual public notice of delinquency, the treasurer may issue a warrant of levy, subject to the procedural and publication steps before sale.

Q2: Does filing an appeal stop levy or sale? No. As a rule, appeals do not suspend collection. A stay requires a specific order (e.g., from a competent authority) or statutory ground.

Q3: If the sale proceeds exceed the taxes and expenses, do I get the excess? Yes. After satisfying taxes, interest, and sale expenses, any excess belongs to the owner.

Q4: What if my property is untitled? Levy and sale proceed just the same; the warrant is annotated on the tax declaration, with posting in the locality. The purchaser may later apply for title in accordance with land laws.

Q5: Are residential homes protected from RPT levy? No blanket exemption. If the home is subject to RPT and is delinquent, it may be levied and sold, subject to your one-year redemption right and due-process requirements.

Q6: Can the LGU seize only part of my large parcel? Yes. The treasurer should levy no more than necessary to satisfy the liability; a portion may be carved out if feasible.

Common pitfalls that invalidate levy or sale

No proper service of the warrant on the owner/possessor.
No annotation with the assessor/Register of Deeds.
Defective publication/posting (wrong venue, inadequate period, missing newspaper publication where available).
Absence of a valid assessment or misidentification of the property/owner.
Prescription (action taken beyond the 5- or 10-year limit).
Excessive levy (seizing far more property than needed without justification).

Courts are strict with jurisdictional requirements (service, annotation, publication). Substantial compliance may cure minor errors, but not jurisdictional defects.

Practical strategies

For LGUs

Standardize templates for warrants, notices, and sale minutes.
Maintain a levy diary to track the 30-day and 1-year clocks.
Publish in a newspaper of general circulation whenever available; keep proofs of publication/posting.

For property owners

Set reminders for quarterly payments; use early-payment discounts.
If you dispute the amount, pay under protest to avoid interest and enforcement.
If levied, scrutinize procedural compliance and prescription; consider redeeming early to reduce redemption interest.

Bottom line

An LGU can levy real property once RPT is delinquent, provided the treasurer properly issues and serves a warrant, annotates the levy, and publishes/posts a sale notice before public auction. Owners retain a one-year right to redeem. Strict due process and timely action on both sides make the difference between a valid collection and a void sale.